Business
Altadena ICE raid highlights fears that roundups will stymie rebuilding efforts
When ICE agents raided the construction site of a burned property in Altadena earlier this month, they made no arrests. The man they were after was not there. But the mere specter of them returning spooked the workers enough to bring the project to a temporary halt.
The next day, half of the 12-man team stayed home. The crew returned to full strength by the end of the week, but they now work in fear, according to Brock Harris, a real estate agent representing the developer of the property. “It had a chilling effect,” he said. “They’re instilling fear in the workers trying to rebuild L.A.”
Harris said another developer in the area started camouflaging his construction sites: hiding Porta Potties, removing construction fences and having workers park far away and carpool to the site so as not to attract attention.
The potential of widespread immigration raids at construction sites looms ominously over Los Angeles County’s prospects of rebuilding after the two most destructive fires in its history.
A new report by the UCLA Anderson Forecast said that roundups could hamstring the colossal undertaking to reconstruct the 13,000 homes that were wiped away in Altadena and Pacific Palisades on Jan. 7 — and exacerbate the housing crisis by stymieing new construction statewide.
“Deportations will deplete the construction workforce,” the report said. “The loss of workers installing drywall, flooring, roofing and the like will directly diminish the level of production.”
A house under construction in Altadena.
(Myung J. Chun / Los Angeles Times)
The consequences will spread far beyond those who are deported, the report said. Many of the undocumented workers who manage to avoid ICE will be forced to withdraw from the labor force. Their specialties are often crucial to getting projects completed, potentially harming the fortunes of remaining workers who can’t finish jobs without their help.
“The productive activities of the undocumented and the rest of the labor force are often complementary,” the report said. “For example, home building could be delayed because of a reduction in specific skills” resulting in “a consequent increase in unemployment for the remaining workforce.”
Jerry Nickelsburg, the director of the Anderson Forecast and author of the quarterly California report released Wednesday, said the “confusion and uncertainty” about the rollout of both immigration and trade policies “has a negative economic impact on California.”
Contractors want to hire Americans but have a hard time finding enough of them with proper abilities, said Brian Turmail, a spokesperson for the Associated General Contractors of America trade group.
“Most of them are kind of in the Lee Greenwood crowd,” he said, referring to a county music singer known for performing patriotic songs. “They’d rather be hiring young men and women from the United States. They’re just not there.”
“Construction firms don’t start off with a business plan of, ‘Let’s hire undocumented workers,’” Turmail said. “They start with a business plan of, ‘Let’s find qualified people.’ It’s been relatively easy for undocumented workers to get into the country, so let’s not be surprised there are undocumented workers working in, among other things, industries in construction.”
The contractors’ trade group said government policies are partly to blame for the labor shortage. About 80% of federal funds spent on workforce development go to encouraging students to pursue four-year degrees, even though less than 40% of Americans complete college, Turmail said.
“Exposing future workers to fields like construction and teaching them the skills they need is woefully lacking,” he said. “Complicating that, we don’t really offer many lawful pathways for people born outside the United States to come into the country and work in construction.”
A home under construction in Altadena, where immigration agents visited earlier this month.
(Myung J. Chun / Los Angeles Times)
The recently raided Altadena project had plenty of momentum before the raid, Harris said. The original house burned in the Eaton fire, but the foundation survived, so the developer, who requested anonymity for fear of ICE retribution, purchased the lot with plans to rebuild the exact house that was there.
Permits were quickly secured, and the developer hoped to finish the home by December. But as immigration raids continue across L.A., that timeline could be in jeopardy.
“It’s insane to me that in the wake of a natural disaster, they’re choosing to create trouble and fear for those rebuilding,” Harris said. “There’s a terrible housing shortage, and they’re throwing a wrench into development plans.”
Los Angeles real estate developer Clare De Briere called raids “fearmongering.”
“It’s the anticipation of the possibility of being taken, even if you are fully legal and you have your papers and everything’s in order,” she said. “It’s an anticipation that you’re going to be taken and harassed because of how you look, and you’re going to lose a day’s work or potentially longer than that.”
De Briere helped oversee Project Recovery, a group of public and private real estate experts who compiled a report in March on what steps can be taken to speed the revival of the Palisades and Altadena as displaced residents weigh their options to return to fire-affected neighborhoods.
The prospect of raids and increased tariffs has increased uncertainty about how much it will cost to rebuild homes and commercial structures, she said. “Any time there is unpredictability, the market is going to reflect that by increasing costs.”
The disappearance of undocumented workers stands to exacerbate the labor shortage that has grown more pronounced in recent years as construction has been slowed by high interest rates and the rising cost of materials that could get even more expensive due to new tariffs.
“In general, costs have risen in the last seven years for all sorts of construction” including houses and apartments, said Devang Shah, a principal at Genesis Builders, a firm focused on rebuilding homes in Altadena for people who were displaced by the fire. “We’re not seeing much construction work going on.”
The slowdown has left a shortage of workers as many contractors consolidated or got out of the business because they couldn’t find enough work, Shah said.
“When you start thinking about Altadena and the Palisades,” he said, “limited subcontractors can create headwinds.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
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